Wintershall Dea invited
Wintershall Dea Q3 results: a leaner company structure for a competitive and changing market
In a media roundtable today, Wintershall Dea CEO Mario Mehren and CFO Paul Smith reported the company’s operational and financial results from the third quarter 2023.
The company reported production at 324,000 barrels of oil equivalent per day in Q3 2023, stable year-on-year. EBITDAX was at 964 million euros, 53 per cent lower year-on-year, reflecting a return to a more moderate commodity price environment since the extraordinary Q3 in 2022.
Optimised company structure
In September, Wintershall Dea announced changes to its company structure. “The company plans to reduce costs by €200 million a year”, said CFO Paul Smith. “We are simplifying Wintershall Dea: to strengthen our competitiveness, reduce costs, and keep us focused on our strategic priorities.”
The company will reduce the size of its board to three members, reduce around five hundred jobs, and have a sole headquarters in Kassel. CEO Mario Mehren said, “these are tough decisions, but the right ones to keep us competitive in a changing and difficult environment.”
In addition, Mehren announced that Wintershall Dea’s international E&P business and carbon management and hydrogen activities will be legally separated from its shareholdings involving Russia. “The legal separation is a part of our exit, not an alternative to exit from Russia”, emphasised Mehren.
Wintershall Dea: a CCS leader in the North Sea
Wintershall Dea also announced progress in its carbon management and hydrogen business, with another CCS licence awarded in the North Sea. The ‘Camelot’ licence in the UK, secured in August, has storage potential of up to six million tonnes of CO2 per year. “With four CCS licences, in three countries, we are shaping up to be a real CCS leader in the North Sea”, Mehren said.
Dvalin onstream: more gas for Europe ahead of winter
The company brought its Dvalin natural gas field in Norway online at the end of July. Dvalin is expected to produce until the late 2030s, and at its peak will supply enough energy to heat two million homes. “As Europe continues to search for reliable, long-term sources of gas, we are pleased that Dvalin is safely online”, said Mehren.
With winter looming, Mehren cautioned against complacency on European energy security. Despite full gas storage, he described a fragile situation with multiple potential supply risks, including the current Middle East conflict. “When it comes to the security of energy supply that our economy and society expects: none of us – policymakers, or industry – can take our eye off the ball.”
Project progress in Argentina
In Argentina, there was good progress at the Fénix project, with the successful completion of the subsea pipeline. From 2025 Fénix is planned to deliver 10 million cubic metres of gas a day. The project underpins Wintershall Dea's contribution to Argentina's energy supply and is also expected to significantly increase the company's global gas production.